Fill Infrastructural gaps hampering food processing in India : Assocham
With just over two per cent of annual production processed, the Associated Chambers of Commerce of India (Assocham) on Thursday urged the Centre to fill infrastructural gaps to improve growth of the food processing sector in India.
“Just over two per cent of annual production is processed in India, an abysmally low figure when compared to countries like Malaysia, the US and China, where around 83 per cent, 65 per cent and 23 per cent of produce, respectively, is processed,” said Assocham Secretary General D S Rawat.
The Assocham asked the government to fill up gaps in itsinfrastructure availability, create awareness and improve the efficiency of a value chain that were hampering the growth of the sector.
It said the inefficiencies in the supply chain, an absence of economies of scale, technology up-gradation and quality issues were certain key challenges hindering India’s six lakh crore rupees worth food processing industry.
India Equity Partners puts 75 per cent Sagar Ratna stake on the block
New Delhi: Private equity firm India Equity Partners (IEP) Fund Advisors has put its majority 75 per cent stake in South Indian cuisine restaurant chain Sagar Ratna Restaurants on the block five years after acquiring it, three officials in direct knowledge of the development said.
“Differences between original promoter and founder Jayaram Banan, who continues to hold minority stake in Sagar Ratna, and litigation between Banan and IEP over multiple governance issues have led to IEP’s decision to exit,†one of the officials mentioned above said.
IEP had bought controlling stake in Sagar Ratna for about Rs 180 crore in 2011. The chain runs close to 90 stores across the country, split up between the company and franchisees. “IEP is keen to sell off its stake to focus on its other businesses.
But it isn’t finding too many takers at its asking price. The eating out industry is as it is undergoing stress. Banan himself is one of the contenders to buy back the stake at a discounted price, and talks between IEP and Banan are underway,†another official said.
Banan has offered to pay about 25-30 per cent less than what IEP had paid, which, according to this official, is not acceptable to the fund management. An email sent to IEP managing director SidKhanna on Friday elicited no response till the time of going to print. Sagar Ratna Restaurants chief executive Murali Parna and Banan were unavailable for comment on the matter. Over the past one year or so, the Rs 70-crore turnover chain has refurbished its menu, accelerated its home delivery business by tying up with online aggregators and is planning expansion across the west and south.
Indian companies at Agroprodmash look to boost agribusiness
Around 50 exhibitors from India are part of the India Pavilion in Agroprodmash 2016, Russia’s most important exhibition in the food processing sector, now being held in Moscow. The India pavilion at the fair has been organised by FICCI (Federation of Indian Chambers of Commerce and Industry) and the Indian Ministry of Commerce and Industry.
Amit Telang, First Secretary Economic at the Indian Embassy inaugurated the India pavilion. Also present were representatives from the Russian Chamber of Commerce and Industry (RFCCI) and Indian and Russian Media.
Telang stressed that strengthening economic relations between India and Russia is one of the top priorities for both the Governments, and participation by Indian businesses in such exhibitions provides the desired impetus to government efforts to enhance awareness of potential of Indian market in Russia and provide a necessary interactive platform for both sides. Cooperation in the agriculture and food processing sector is a promising area and has been in focus over the last few years.
Agroprodmash attracts over 800 exhibitors from all over the world and 21,000 trade visitors from over 60 countries. It is a perfect platform to explore new market and business opportunities, generating sales leads and meet potential trade partners.
